Lennar Corp. (LEN) Downgraded by Zacks Investment Research to “Sell”
Lennar Corp. (NYSE:LEN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Thursday.
According to Zacks, “Lennar maintained its strong second-quarter performance in the third as well, beating the Zacks Consensus Estimate for both earnings and sales. Earnings increased 5.2% year over year driven by strong revenues and improved SG&A leverage. Revenues also grew 13.7% year over year buoyed by strong revenues. The company is one of the best positioned homebuilders to capitalize on the housing recovery, courtesy of the diverse revenue mix, steady top-line performance, above-average order growth and improving SG&A leverage. Moreover, the company’s ancillary platforms — Rialto, Multi-Family, FivePoint and Financial Services — are evolving and should improve further. However, labor shortage, gross margin compression due to rising land and labor costs and sales slowdown in Houston might keep the housing momentum in check in the remainder of 2016. Even, Lennar cut its gross margin forecast for the fourth quarter owing to rising costs.”
A number of other equities analysts have also recently issued reports on the stock. Argus began coverage on shares of Lennar Corp. in a research note on Tuesday, July 5th. They issued a “buy” rating and a $59.00 price objective for the company. Wedbush started coverage on shares of Lennar Corp. in a research report on Monday. They issued a “neutral” rating and a $46.00 price objective for the company. Keefe, Bruyette & Woods lowered their price objective on shares of Lennar Corp. from $57.00 to $55.00 and set an “outperform” rating for the company in a research report on Wednesday. FBR & Co restated an “outperform” rating and issued a $60.00 price objective on shares of Lennar Corp. in a research report on Wednesday, June 22nd. Finally, Citigroup Inc. lowered their price objective on shares of Lennar Corp. from $50.00 to $48.00 and set a “neutral” rating for the company in a research report on Wednesday. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company’s stock. Lennar Corp. presently has an average rating of “Buy” and an average price target of $54.08.
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Shares of Lennar Corp. (NYSE:LEN) opened at 43.45 on Thursday. The stock has a 50 day moving average of $46.28 and a 200 day moving average of $46.46. Lennar Corp. has a 52-week low of $37.14 and a 52-week high of $52.50. The company has a market cap of $9.52 billion, a P/E ratio of 11.60 and a beta of 1.37.
Lennar Corp. (NYSE:LEN) last posted its earnings results on Tuesday, September 20th. The company reported $1.01 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.89 by $0.12. The company earned $2.83 billion during the quarter. Lennar Corp. had a net margin of 8.37% and a return on equity of 14.34%. The business’s revenue was up 13.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.96 earnings per share. On average, equities analysts anticipate that Lennar Corp. will post $3.82 earnings per share for the current fiscal year.
Large investors have recently made changes to their positions in the stock. Sanders Capital LLC raised its stake in shares of Lennar Corp. by 0.5% in the second quarter. Sanders Capital LLC now owns 8,435,452 shares of the company’s stock valued at $396,802,000 after buying an additional 38,157 shares in the last quarter. Aristotle Capital Management LLC raised its stake in shares of Lennar Corp. by 3.2% in the second quarter. Aristotle Capital Management LLC now owns 5,595,802 shares of the company’s stock valued at $257,966,000 after buying an additional 171,406 shares during the period. Eminence Capital LP raised its stake in shares of Lennar Corp. by 10.9% in the second quarter. Eminence Capital LP now owns 3,365,856 shares of the company’s stock valued at $155,166,000 after buying an additional 331,226 shares during the period. Barrow Hanley Mewhinney & Strauss LLC raised its stake in shares of Lennar Corp. by 3.7% in the second quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 2,986,303 shares of the company’s stock valued at $137,669,000 after buying an additional 106,100 shares during the period. Finally, Lord Abbett & CO. LLC raised its stake in shares of Lennar Corp. by 15.0% in the second quarter. Lord Abbett & CO. LLC now owns 2,835,787 shares of the company’s stock valued at $130,730,000 after buying an additional 368,924 shares during the period. 86.39% of the stock is owned by hedge funds and other institutional investors.
Lennar Corp. Company Profile
Lennar Corporation is a homebuilder that operates in various states with deliveries of over 24,290 new homes. The Company’s segments include Homebuilding activities, which include Homebuilding East, Homebuilding Central, Homebuilding West, Homebuilding Southeast Florida and Homebuilding Houston; Lennar Financial Services; Rialto, and Lennar Multifamily.
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